Kate Spade's handbag brand turnaround is progressing faster than expected.
Tapestry (tpr), his parent company, said Kate Spade's single-store sales had fallen by 3% in the last quarter, a decline of moderately worse than the 7.2% Wall Street fall, according to Consensus Metrix.
While sales sales have been disturbed after harassment by designer Kate Spade in June, tapestry of the correction used to rehabilitate the Coach, the biggest brand in her portfolio, seems to have been a few years ago. Kate Spade is now also helping to recover a sense of exclusivity. (Kate Spade has not participated in the brand since 2006.)
The love of the coach was severely damaged by years of discontinuous increases and reliance on outlet stores, as well as the opening of too many shops. As specified by Fortune Last year, the Coach last few years of the majority of online turkey cold sales events, closed many of the tumor-based stores, he hired top designer in Stuart Vevers, and made the prestigious spokesman Selena Gomez. This allowed the Coach to return to growth and regain much of its high tech luster.
Tapestry, who bought Kate Spade last year for $ 2.4 billion as part of her attempt to become a brands house over Coach, applied the same approach to Kate Spade, who suffered too much brand. (Michael Kors also used this strategy to rehabilitate his damaged brand over the past two years.) Part of a tapestry rationale with Kate Spade to buy was that she had a blueprint to resurrect his image after he had be ubiquitous and take the world brand. (Coach is a power house for many years in markets such as Japan and China.)
“Fiscal 2019 will be a crucial year for Kate Spade as we develop the brand,” said Tapestry CEO Victor Victor in a statement. “We will focus on global expansion, particularly in China where the brand is new and we see an unlimited opportunity.”
At the Coach, sales grew in the same store 2% percent, hair less than the estimated 2.1%. And by Stuart Weitzman, as well as a tapestry brand, refused delivery delays and other logistics sales problems, which fell to $ 73 million during the quarter, from $ 88 million in the previous year. Overall, tapestry income reported a fourth quarter fiscal quarter of $ 211.7 million, or 73 cents per share, up from $ 151.7 million, or 53 cents per share a year earlier. Without included items, tapestry earned 60 cents per share, at the top of 57 cents per share which analysts expected to have surveyed Thomson Reuters. Net sales rose 31% to $ 1.48 billion, just over $ 1.47 billion.
Wall Street liked these results and the shares went up 12% in Tuesday morning trade.
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